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Friday, October 17, 2008

GM And Chrysler Merger?

The preliminary, proposed merger of GM and Chrysler is a bad idea. It will cause cuts in jobs, and more concessions for the remaining workers. Retirees may suffer too.

Not only that, but there would be duplicate manufacturing facilities and too many overlapping of like vehicles.

Another very important point is now they would have umpteen divisions and all would suffer in this bad recession (and coming depression). Something GM has a problem with already and does not need.

Another key point is that Chrysler holds most of the cash, and who knows how they would want to spread it around. Also (very important) Chrysler would now be the sole owner of GMAC, the finance unit, and this could cause friction between GM and Chrysler. How would loans be handed out to potential customers? Who would receive the best deals? Chrysler or GM.

A last, but very small point: would it be GM's Chrysler brand or Chrysler's GM brand?

I am against this merger completely.